3QFY2017 Result Update Pharmaceutical February 23, 2017 Aurobindo Pharma Performance Highlights Y/E march (` cr) 3QFY17 2QFY17 % chg (QoQ) 3QFY16 % chg (yoy) Net sales 3,844 3,714 3.5 3,432 12.0 Other income 70 70 (0.7) 70 (0.9) Operating profit 833 867 (3.9) 760 9.7 Interest (2) (3) (41.9) 23 (106.8) Adj. Net profit 579 606 (4.6) 544 6.3 For 3QFY2017, Aurobindo Pharma (APL) posted numbers which were almost inline with expectations on sales and net profit front, with sales marginally higher than expected and net profit marginally lower than expected. On sales front, the company posted sales of `3844cr (v/s. `3,715cr expected) v/s. `3,432cr in 3QFY2016, posting a yoy growth of 12.0%. On the operating front, the EBITDA margin came in at 21.7% (vs. 23.1% expected) v/s. 22.1% in 3QFY2016. Consequently, the Adj. PAT came in at `579cr (v/s. `603cr expected) v/s. `544cr in 3QFY2016, a yoy growth of 6.3%. We maintain our Buy rating on the stock. BUY CMP `686 Target Price `877 Investment Period 12 months Stock Info Sector Market Cap (` cr) Pharmaceutical 40,137 Net debt (` cr) 3,265 Beta 1.1 52 Week High / Low 895/582 Avg. Daily Volume 177,746 Face Value (`) 1 BSE Sensex 28,762 Nifty 8,927 Reuters Code ARBN.BO Bloomberg Code ARBP@IN Results mostly in-line with expectation: Aurobindo Pharma s (APL) posted numbers which were almost in-line with expectations on sales and net profit fronts, with sales marginally higher than expected and net profit marginally lower than expected. On sales front, the company posted sales of `3844cr (v/s. `3,715cr expected) v/s. `3,432cr in 3QFY2016, posting a yoy growth of 12.0%. The formulation sales (`3,130cr) posted a yoy growth of 11.4%, while API (`775.9cr) posted a yoy growth of 11.6%. On the operating front, the EBITDA margin came in at 21.7% (v/s. 23.1% expected) v/s. 22.1% in 3QFY2016. Consequently, the Adj. PAT came in at `579cr (v/s. `603cr expected) v/s. `544cr in 3QFY2016, a yoy growth of 6.3%. Outlook and valuation: We estimate the company s net sales to log a CAGR of 15.1% over FY2016 18E to `18,078cr on the back of US formulations, which will be supplemented through the recent acquisitions of the Western European formulation businesses of Actavis and US Natrol. The acquisitions have also led APL to become a >US$2bn sales company, with ~80% of sales being accounted by formulations. We recommend a Buy rating with a target price of `877. Key financials (Consolidated) Y/E March (` cr) FY2015 FY2016 FY2017E FY2018E Net sales 12,043 13,651 15,720 18,078 % chg 49.8 13.3 15.2 15.0 Adj. Net profit 1,619 1,982 2,418 2,763 % chg 21.5 22.4 22.0 14.2 EPS (`) 27.7 33.9 41.4 47.3 EBITDA margin (%) 20.6 21.7 23.7 23.7 P/E (x) 24.7 20.2 16.6 14.5 RoE (%) 36.4 32.5 29.6 26.1 RoCE (%) 25.3 24.8 24.0 22.5 P/BV (x) 3.9 5.7 4.3 3.4 EV/Sales (x) 1.9 3.2 2.8 2.4 EV/EBITDA (x) 9.4 14.6 11.7 10.1 ; Note: CMP as of February 21, 2017 Shareholding Pattern (%) Promoters 51.9 MF / Banks / Indian Fls 13.8 FII / NRIs / OCBs 24.5 Indian Public / Others 9.8 Abs. (%) 3m 1yr 3yr Sensex 11.6 21.3 38.9 Aurobindo (3.6) 4.6 180.4 3-year daily price chart Sarabjit Kour Nangra +91 22 3935 7800 Ext: 6806 sarabjit@angelbroking.com Please refer to important disclosures at the end of this report 1 1,000 800 600 400 200 0 Nov-12 May-13 Dec-13 Jun-14 Jan-15 Jul-15 Jan-16 Aug-16 Feb-17
Exhibit 1: 3QFY2017 performance (Consolidated) Y/E March (` cr) 3QFY2017 2QFY2017 % chg (QoQ) 3QFY2016 % chg (YoY) 9MFY2017 9MFY2016 % chg (YoY) Net sales 3,844 3,714 3.5 3,432 12.0 11,263 10,036 12.2 Other income 70 70 (0.7) 70 (0.9) 218 223 (2.2) Total income 3,914 3,784 3.4 3,502 11.8 11,480 10,258 11.9 Gross profit 2,135 2,085 2.4 1,879 13.6 6,245 5,500 13.6 Gross margins 55.5 56.2 54.7 55.5 54.8 Operating profit 833 867 (3.9) 760 9.7 2,527 2,148 17.6 OPM (%) 21.7 23.4 (7.2) 22.1 22.4 21.4 Interest (2) (3) (41.9) 23 (106.8) 9 108 (91.3) Dep & amortisation 111 110 0.9 99 11.7 328 281 16.6 PBT 793 830 (4.4) 708 12.0 2,408 1,982 21.5 Provision for taxation 218 224 (2.8) 186 17.0 643 514 24.9 Net profit 575 606 (5.0) 522 10.3 1,766 1,467 20.3 Less : Exceptional items (gains)/loss - - - 0 - - MI & share in associates 3 0 13 3 3 - PAT after Exceptional items 579 606 (4.6) 544 6.3 1,769 1,470 20.3 Adjusted PAT 579 606 (4.6) 544 6.3 1,769 1,470 20.3 EPS (`) 9.9 10.4 9.3 30.3 25.2 Exhibit 2: Actual v/s Estimate (` cr) Actual Estimate Variation % Net sales 3,844 3,715 3.5 Other operating income 70 60 16.8 Operating profit 833 857 (2.8) Tax 218 193 13.0 Adj. Net profit 579 603 (4.0) Revenue up 12.0% yoy; marginally higher than our expectation: On sales front, the company posted sales of `3844cr (v/s. `3,715cr expected) v/s. `3,432cr in 3QFY2016, a yoy growth of 12.0%. The formulation sales (`3,130cr) posted a yoy growth of 11.4%, while API (`775.9cr) posted a yoy growth of 11.6%. The US business, which contributed 46% to the gross sales, witnessed a yoy growth of 17.8% in 3QFY2017. In the formulation segment, the US (`1,735cr) posted a yoy growth of 17.8%, while Europe & ROW (`990cr) posted a yoy growth of 7.6%. ARV (`279cr) posted a yoy de-growth of 0.6%. Overall, formulations now contribute around 80.1% of sales, while the balance is accounted by APIs. The company has 303 approved ANDAs including 41 tentative approvals. During 3QFY2017, the company filed 9 ANDAs with the USFDA, i.e. 5 in the oral category and 4 in the injectable category. The company received 23 ANDA approvals from the USFDA including 14 final approvals and 3 tentative approvals during the quarter. February 23, 2017 2
Exhibit 3: Sales break-up (Consolidated) (` cr) 3QFY2017 2QFY2017 % chg (qoq) 3QFY2016 % chg (yoy) 9MFY2017 9MFY2016 % chg Formulations 3,130 3,004 4.2 2,809 11.4 9,166 8,098 13.2 US 1,745 1,735 0.6 1,558 12.0 5,184 4,445 16.6 Europe & ROW 1,043 990 5.4 946 10.3 3,058 2,773 10.3 ARV 342 279 22.8 305 12.0 924 881 4.8 API 776 769 0.9 695 11.6 2279 2109 8.1 SSP 525 511 2.7 449 16.8 1531 1355 13.0 Cephs 251 258 (2.6) 246 2.1 748 755 (0.9) NPNC 3,906 3,773 3.5 3,504 11.5 11,445 10,207 12.1 OPM comes in at 21.7%: On the operating front, the EBITDA margin came in at 21.7% (v/s. 23.1% expected) v/s. 22.1% in 3QFY2016. The gross margin came in at 55.5% in 3QFY2017 v/s. 54.7% in 3QFY2016. Other expenses posted a yoy growth of 16.4%. Exhibit 4: OPM Trend 24.0 23.4 23.0 22.0 21.0 22.1 22.1 22.6 21.7 (%) 20.0 19.0 18.0 17.0 16.0 15.0 3QFY2016 4QFY2016 1QFY2017 2QFY2017 3QFY2017 Net profit marginally lower than estimate: Consequently, the Adj. PAT came in at `579cr (v/s. `603cr expected) v/s. `544cr in 3QFY2016, a yoy growth of 6.3%. The lower than estimated net profit growth was aided by lower than expected OPM. February 23, 2017 3
Exhibit 5: Adj. net profit (` cr) 620 610 600 590 580 570 560 550 540 530 520 510 606 585 579 562 544 3QFY2016 4QFY2016 1QFY2017 2QFY2017 3QFY2017 Management takeaways At the end of 3QFY2017, the company had filed 421 ANDAs, with 303 final approvals, and 41 tentative approvals. R&D as % of sales to be ~5-6% in FY2018/FY2019. Planning to increase Auro Life capacity in the US by 3x. Transferred manufacturing of 42 products (to be sold in EU) to India till now; plans to transfer >60 by the end of 4QFY2017. Recommendation rationale US and ARV formulation segments the key drivers for base business: APL s business will primarily be driven by the US and ARV segments on the formulation front. The company has been an aggressive filer in the US market with 421 ANDAs filed until 3QFY2017. Amongst peers, APL has emerged as one of the top ANDA filers. The company has aggressively filed ANDAs in the last few years and is now geared to reap benefits, even though most of the filings are for highly competitive products. Going ahead, with US$70bn going off-patent in the US over the next three years, we believe APL is well placed to tap this opportunity and is one of the largest generic suppliers. The company enjoys high market share, as it is fully integrated in all its products apart from having a larger product basket. Also, the company plans to launch 18 injectables in the next 2 years, which would drive its growth and profitability. The US revenue has grown at a CAGR of 31% over FY2009-2015 to `4,832cr. Going forward, the US business of the company is expected to post a CAGR of 15% over FY2016-18E. Acquisitions to augment growth and improve sales mix: APL announced the signing of a binding offer to acquire commercial operations in seven Western European countries from Actavis. The net sales from the acquired businesses were around EUR320mn in 2013 with a growth rate of over 10% yoy. With this, the European sales of the company would now be ~EUR400mn. Although these businesses are currently loss-making (by around EUR20mn), February 23, 2017 4
APL expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make APL one of the leading Indian pharmaceutical companies in Europe with a position in the top 10 in several key markets, which it plans to leverage to supply or widen its product portfolio through introduction of its own products, especially high margin products like injectiables. Also, in December 2014, Aurobindo USA, spent US$132.5mn to acquire the assets of Natrol with an agreement to take on certain liabilities. With this acquisition, the company gets an entry into the nutraceutical markets. Aurobindo USA believes that Natrol is an excellent strategic fit and provides the right platform for creating a fully-integrated OTC platform in the USA and in other international markets. Natrol, which manufactures and sells nutritional supplements in USA and other international markets, provides Aurobindo with-strong brand reputation and presence in a variety of attractive supplement markets. Natrol has a proven performance in the mass market, health food and specialty channels, and has existing long term relationships with key distribution and retail partners. It addresses a broad range of consumers and has an effective growth strategy to expand market penetration. Outlook and valuation We estimate the company s net sales to log a CAGR of 15.1% over FY2016 18E to `18,078cr on the back of US, which accounts for the largest portion of its product pipeline. This, along with the recent acquisitions of the Western European formulation businesses of Actavis and US Natrol, will lead APL to become a >US$2bn sales company, with ~ 80% of sales being accounted by formulations. We maintain our Buy rating on the stock. Exhibit 6: Key assumptions FY2017E FY2018E Sales Growth (%) 15.2 15.0 Operating Margins (%) 23.7 23.7 Capex (`cr) 800 800 February 23, 2017 5
Exhibit 7: One-year forward PE 900 800 700 600 500 400 300 200 100 0 Oct-08 Aug-09 May-10 Feb-11 Nov-11 Aug-12 (`) May-13 Feb-14 Nov-14 Aug-15 May-16 Feb-17 5x 10x 15x 20x Exhibit 8: Recommendation summary Company Reco CMP Tgt. price Upside FY2018E FY16-18E FY2018E (`) (`) % PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%) Alembic Pharma Neutral 593 - - 19.5 2.6 12.2 (10.8) 27.5 25.3 Aurobindo Pharma Buy 686 877 27.9 14.5 2.4 10.1 18.1 22.5 26.1 Cadila Healthcare Neutral 440 - - 22.9 3.6 16.6 13.5 23.6 27.1 Cipla Sell 593 465 (21.5) 24.2 2.7 16.3 14.2 12.2 13.9 Dr Reddy's Neutral 2,899 - - 22.1 2.6 11.4 (2.7) 15.3 15.2 Dishman Pharma Neutral 229 - - 20.3 2.3 10.0 13.3 10.3 10.9 GSK Pharma* Neutral 2,683 - - 44.5 6.8 32.8 16.9 37.5 34.5 Indoco Remedies Reduce 272 240 (11.8) 17.0 2.0 10.9 33.2 19.1 20.1 Ipca labs Accum 554 613 10.7 28.8 2.0 12.9 34.8 8.6 9.5 Lupin Buy 1,469 1,809 23.1 21.2 4.0 13.1 17.2 24.4 20.9 Sanofi India Neutral 4,186 - - 24.3 3.2 17.4 22.2 25.6 28.8 Sun Pharma Buy 673 847 25.8 19.1 4.0 12.2 26.5 18.9 20.1 ; Note: *December year ending February 23, 2017 6
Company background Aurobindo Pharma manufactures generic pharmaceuticals and APIs. The company s manufacturing facilities are approved by several leading regulatory agencies like the USFDA, UK MHRA, WHO, Health Canada, MCC South Africa and ANVISA Brazil among others. The company s robust product portfolio is spread over six major therapeutic/product areas encompassing antibiotics, antiretrovirals, CVS, CNS, gastroenterological, and anti-allergics. The company has acquired the generic business of Actavis, which has made it a US$2bn company and a leading company in Europe. With this acquisition, formulations now contribute around 80% to the company s sales (as in FY2016). February 23, 2017 7
Profit & loss statement (Consolidated) Y/E March (` cr) FY2013 FY2014 FY2015 FY2016 FY2017E FY2018E Gross sales 5,863 8,198 12,221 13,878 15,959 18,353 Less: Excise duty 80 159 178 227 239 275 Net Sales 5,783 8,038 12,043 13,651 15,720 18,078 Other operating income 72 61 77 245 245 245 Total operating income 5,855 8,100 12,121 13,896 15,965 18,323 % chg 26.5 38.3 49.6 14.6 14.9 14.8 Total Expenditure 4,966 5,968 9,557 10,691 12,001 13,802 Net Raw Materials 2,792 3,606 5,506 6,158 6,288 7,231 Other Mfg costs 578 804 1,204 1,365 1,572 1,808 Personnel 663 832 1,302 1,551 1,783 2,051 Other 932 726 1,545 1,617 2,358 2,712 EBITDA 817 2,071 2,486 2,960 3,718 4,276 % chg 53.2 153.5 20.1 19.1 25.6 15.0 (% of Net Sales) 14.1 25.8 20.6 21.7 23.7 23.7 Depreciation& Amort. 249 313 333 393 532 588 EBIT 568 1,758 2,154 2,567 3,187 3,689 % chg 38.8 209.5 22.5 19.2 24.1 15.7 (% of Net Sales) 9.8 21.9 17.9 18.8 20.3 20.4 Interest & other Charges 131 108 84 159 192 220 Other Income 29 23 81 68 68 68 (% of PBT) 5.3 1.3 3.6 2.5 2.1 1.8 Share in profit of Asso. - - - - - - Recurring PBT 538 1,735 2,227 2,722 3,309 3,782 % chg 62.3 222.7 28.4 22.2 21.5 14.3 Extraordinary Exp./(Inc.) 163.4 203.1 59.6 - - - PBT (reported) 374 1,532 2,168 2,722 3,309 3,782 Tax 82.7 363.5 596.6 744.4 893.4 1,021.2 (% of PBT) 22.1 23.7 27.5 27.3 27.0 27.0 PAT (reported) 291 1,168 1,571 1,978 2,416 2,761 Less: Minority int. (MI) (2) (4) (5) (4) (3) (2) PAT after MI (reported) 294 1,172 1,576 1,982 2,418 2,763 ADJ. PAT 432 1,333 1,619 1,982 2,418 2,763 % chg 118.5 208.6 21.5 22.4 22.0 14.2 (% of Net Sales) 5.1 14.6 13.1 14.5 15.4 15.3 Basic EPS (`) 7.4 22.8 27.7 33.9 41.4 47.3 % chg 8.9 208.6 21.5 22.4 22.0 14.2 February 23, 2017 8
Balance sheet (Consolidated) Y/E March (` cr) FY2013 FY2014 FY2015 FY2016 FY2017E FY2018E SOURCES OF FUNDS Equity Share Capital 29 29 29 58 58 58 Share Application Money - - - - - - Reserves & Surplus 2,577 3,721 5,127 6,998 9,246 11,838 Shareholders Funds 2,606 3,750 5,156 7,057 9,304 11,896 Minority Interest 11 26 26 60 57 55 Long-term provisions 9 9 24 24 24 24 Total Loans 3,384 3,769 3,864 4,076 5,500 5,500 Deferred Tax Liability 68 205 211 236 236 236 Total Liabilities 6,069 7,760 9,280 11,452 15,098 17,688 APPLICATION OF FUNDS Gross Block 3,316 4,107 6,095 7,195 7,995 8,795 Less: Acc. Depreciation 1,140 1,461 1,794 2,187 2,718 3,306 Net Block 2,175 2,645 3,752 4,865 5,277 5,490 Capital Work-in-Progress 645 310 310 310 310 310 Goodwill 55 76 64 89 89 89 Investments 22 20 20 0 0 0 Long-term loans and adv. 243 789 486 434 434 436 Current Assets 4,128 5,631 8,279 10,001 12,249 15,113 Cash 208 179 469 834 2,089 2,275 Loans & Advances 332 789 692 784 409 1,625 Other 3,587 4,664 7,118 8,383 9,751 11,213 Current liabilities 1,200 1,730 3,634 4,247 3,261 3,750 Net Current Assets 2,928 3,901 4,645 5,755 8,988 11,363 Mis. Exp. not written off - 18 5 - - - Total Assets 6,069 7,760 9,280 11,452 15,098 17,688 February 23, 2017 9
Cash flow statement (Consolidated) Y/E March (` cr) FY2013 FY2014 FY2015 FY2016 FY2017E FY2018E Profit before tax 374 1,532 2,168 2,722 3,309 3,782 Depreciation 249 313 333 393 532 588 (Inc)/Dec in Working Capital (191) (457) (757) (796) (1,979) (2,188) Less: Other income 29 23 81 68 68 68 Direct taxes paid (83) (363) (597) (744) (893) (1,021) Cash Flow from Operations 321 1,001 1,066 1,507 900 1,093 (Inc.)/Dec.in Fixed Assets (283) (455) (1,989) (1,100) (800) (800) (Inc.)/Dec. in Investments (16) (2) - (20) - - Other income 29 23 81 68 68 68 Cash Flow from Investing (271) (435) (1,908) (1,051) (732) (732) Issue of Equity - - - - - - Inc./(Dec.) in loans 288 385 94 213 1,424 - Dividend Paid (Incl. Tax) (17) (102) (171) (171) (171) (171) Others (183) (879) 1,209 (132) (167) (4) Cash Flow from Financing 88 (596) 1,133 (90) 1,086 (175) Inc./(Dec.) in Cash 138 (30) 291 365 1,255 186 Opening Cash balances 71 208 179 469 834 2,089 Closing Cash balances 208 179 469 834 2,089 2,275 February 23, 2017 10
Key ratios Y/E March FY2013 FY2014 FY2015 FY2016 FY2017E FY2018E Valuation Ratio (x) P/E (on FDEPS) 92.7 30.0 24.7 20.2 16.6 14.5 P/CEPS 36.8 13.5 10.5 16.9 13.6 12.0 P/BV 7.7 5.3 3.9 5.7 4.3 3.4 Dividend yield (%) 0.1 0.1 0.1 0.1 0.1 0.1 EV/Sales 4.0 2.9 1.9 3.2 2.8 2.4 EV/EBITDA 28.3 11.4 9.4 14.6 11.7 10.1 EV / Total Assets 3.8 3.0 2.5 3.8 2.9 2.4 Per Share Data (`) EPS (Basic) 7.4 22.8 27.7 33.9 41.4 47.3 EPS (fully diluted) 7.4 22.8 27.7 33.9 41.4 47.3 Cash EPS 18.6 51.0 65.4 40.7 50.5 57.4 DPS 0.5 0.5 0.5 0.5 0.5 0.5 Book Value 89.5 128.8 176.6 120.8 159.3 203.7 Dupont Analysis EBIT margin 9.8 21.9 17.9 18.8 20.3 20.4 Tax retention ratio 77.9 76.3 72.5 72.7 73.0 73.0 Asset turnover (x) 1.0 1.2 1.5 1.4 1.4 1.3 ROIC (Post-tax) 8.0 20.1 19.2 19.5 20.0 19.2 Cost of Debt (Post Tax) 3.2 2.3 1.6 2.9 2.9 2.9 Leverage (x) 1.3 1.1 0.8 0.6 0.4 0.3 Operating ROE 14.0 39.5 33.4 28.9 27.1 24.4 Returns (%) ROCE (Pre-tax) 9.9 25.4 25.3 24.8 24.0 22.5 Angel ROIC (Pre-tax) 11.5 28.5 27.6 27.5 27.9 26.7 ROE 17.5 41.9 36.4 32.5 29.6 26.1 Turnover ratios (x) Asset Turnover (Gross Block) 1.8 2.2 2.4 2.1 2.1 2.2 Inventory / Sales (days) 98 49 90 95 101 108 Receivables (days) 129 95 93 95 63 63 Payables (days) 78 73 114 119 81 81 WC cycle (ex-cash) (days) 159 145 119 119 135 159 Solvency ratios (x) Net debt to equity 1.2 1.0 0.7 0.5 0.4 0.3 Net debt to EBITDA 3.9 1.7 1.4 1.1 0.9 0.8 Interest Coverage (EBIT / Int.) 4.3 16.3 25.5 16.2 16.6 16.8 February 23, 2017 11
Research Team Tel: 022-39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com DISCLAIMER Angel Broking Private Limited (hereinafter referred to as Angel ) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the contrary view, if any. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Disclosure of Interest Statement Aurobindo Pharma 1. Financial interest of research analyst or Angel or his Associate or his relative No 2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No 3. Served as an officer, director or employee of the company covered under Research No 4. Broking relationship with company covered under Research No Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%) over 12 months investment period): Reduce (-5% to -15%) Sell (< -15) February 23, 2017 12